It was sold to TK Energy Limited.
New Silkroutes Group Limited announced that its subsidiary, New Silkroutes Capital Pte. Ltd, has signed a share sale and purchase agreement with TK Energy Limited for the disposal of the company’s entire shareholding interests in International Energy Group Pte. Ltd. (IEG)
for US$10m in cash.
The consideration for the disposal was reached after arm’s length negotiation with the purchaser, on a willing-buyer and willing-seller basis, and taking into account the historical earnings and net tangible assets of IEG.
In connection with the disposal, TK Energy Limited will make available to NSG a loan of US$10m, which will be deemed repaid in full when the disposal is completed.
Thereafter, IEG will cease to be a subsidiary of New Silkroutes Group and it will become a full-fledged healthcare group
The purchaser, TK Energy Limited, is a private limited company incorporated in Hong Kong formed by stakeholders with interests in the oil and gas sector.
As part of the acquisition, it will make available to IEG, credit facilities of up to US$250m of which an initial loan of US$50m will be advanced to IEG, which will be capitalised as shares in the latter upon completion of the sale and purchase agreement.
The disposal is expected to result in a gain of approximately US$10m for New Silkroutes Group. This will reinforce the company’s earnings base, strengthen the Group’s operations and financial position, and enhance the long-term interests of shareholders.
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